Well, folks, Uptober is finally here, and in what could be a precursor to an altcoin season, Ethereum (ETH) treasuries have flipped the script and are leading the buying frenzy. ETH has been on a tear this year. It has bounced back from a rather shaky start in Q1 to deliver a surge of nearly 80% in Q3 alone! The catalyst? A wave of institutional interest, with US spot ETH ETFs parking more than $2.3 Bn in just six days, flipping the narrative and outpacing BTC in year-to-date performance.
Institutions now hold 3.5% of all , edging past 3.4% holdings by treasuries according to Blockworks Research’s data.
(Source: @JasonYanowitz)
Yes, it is a slim margin, but it signals a seismic shift in that ETH treasuries have tripled their stack since July this year, while BTC holdings have flatlined.
A publication quoted Max Shanon, Senior Research Associate at Bitwise, stating, “I think the percentage of supply accumulated by Ethereum treasuries continues to outpace Bitcoin over the short term.”
The last few months have been a wild ride with crypto treasury companies starting to target crypto other than BTC. ETH treasury companies weren’t even on the map six months ago, and suddenly, 71 companies now hold $22 Bn in Ether per Strategic ETH Reserve data.
Why are ETH treasuries accumulating as aggressively as they are, you ask? Well, simply put, it’s all about the yield.
Shanon explained, “Ether generates compounding returns through staking and DeFi real yield — trading, borrowing and lending — while Bitcoin offers no native yield in comparison.”
The 3% staking yield creates a compounding loop where treasury firms stake ETH, earn more ETH and use those gains to justify a higher stock valuation. With higher valuations, treasury firms can raise more capital, buy more ETH, and stake again in a never-ending growth hack.
BTC treasuries can’t do that. They buy, they hold, and that’s it.
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ETH price has held steady above the $4,000 level in the last 24 hours and is looking cautiously optimistic, currently trading at $4,143.
On the daily chart, ETH is trading slightly below its short-term moving averages, with the 20-day moving average at $4,263 and the 50-day at $4212.
(Source: TradingView)
The RSI too has held neutral at 51. A daily close above $4200 would help revive the short-term bullish sentiment that could see its price action climb towards $4600-$4800 in October and possibly even hit the coveted $5000 mark if momentum picks up.
Source: Ethereum Treasuries Steal Bitcoin’s Crown: How Long Before $5K ATH?
